Mako Mining : Q2 2023 MD&A

MANAGEMENT DISCUSSION AND ANALYSIS

For the three and six months ended June 30, 2023

(Expressed in United States dollars)

For the three and six months ended June 30, 2023

This Management Discussion and Analysis ("MD&A") is intended to help the reader understand Mako Mining Corp. (the "Company" or "Mako"), the operations, financial position, and current and future business environment. This MD&A is intended to supplement and complement Mako's condensed interim consolidated financial statements for the three and six months ended June 30, 2023, which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards ("IFRS") applicable to the preparation of interim financial statements, including International Accounting Standard 34, Interim Financial Reporting.

Additional information regarding Mako, including the risks related to the business and those that are reasonably likely to affect Mako's financial statements in the future, is contained in the continuous disclosure materials, including the most recent audited consolidated financial statements and Management Information Circular, which is available on the Company's website at www.makominingcorp.comand under the Company's profile on the SEDAR+ website at www.sedarplus.com.

This MD&A has been prepared as of August 22, 2023. All amounts are expressed in United States (US) dollars ("$"), unless otherwise stated. References to "C$" are to the Canadian dollar.

BUSINESS OVERVIEW

Mako Mining Corp. was incorporated on April 1, 2004 under the laws of the Yukon Territory and continued into British Columbia under the British Columbia Corporations Act. The Company is listed on the TSX Venture Exchange ("TSX-V") under the symbol "MKO". The Company's principal business activities are the production of gold and the exploration of its mineral interests in Nicaragua.

The Company's main asset is the San Albino gold deposit, located within the San Albino-Murra Property, located in Nueva Segovia, Nicaragua ("San Albino"). It was a historical small-scale underground gold producer, commencing production in the early 1900's and operating on and off until approximately 1940. Mako's management brought the San Albino mine into commercial production on July 1, 2021.

The projected free cash flow from the San Albino Mine is anticipated to fund exploration on Mako's prospective 188 square kilometer ("km") land package in Nicaragua.

FINANCIAL HIGHLIGHTS, MAJOR ACTIVITIES AND SIGNIFICANT SUBSEQUENT EVENTS

• Revenues of $12.9 and $28.8 million (Q2 2022 - $16.4 million and YTD Q2 2022 - $33.7 million) for the three and six months ended June 30, 2023 ("Q2 2023" and "YTD Q2 2023"), respectively.
• Sales of 6,727 ounces ("oz") and 15,448 oz (Q2 2022 - 9,027 oz and YTD Q2 2022 - 18,607 oz) of gold in Q2 2023 and YTD Q2 2023, respectively from the San Albino Mine.
• Net loss of $2.6 million and $1.2 million (Q2 2022 -$3.2million and YTD Q2 2022 $4.2 million) for Q2 2023 and YTD Q2 2023, respectively.
• Production of 6,575 oz and 15,258 oz (Q2 2022 - 9,018 oz and YTD Q2 2022 - 18,537 oz) of gold at the San Albino mine respectively; 7,294 oz of silver were produced at the San Albino Mine for Q2 2023
• Cash generated from operating activities of $4.5 million (YTD Q2 2022 - $12.2 million) in YTD Q2 2023. Three monthly repayment installments totaling 49,962 oz of silver ($1.2 million) (Q2 2022 - $1.2 million) were made on the Sailfish Loan during Q2 2023.

Subsequent to June 30, 2023:

• On July 7, 2023, and on August 3, 2023, the Company delivered 17,190 and 16,367 oz of silver in lieu of $0.4 million and $0.4 million cash, respectively, on the Sailfish Loan.

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For the three and six months ended June 30, 2023

RESULTS OF OPERATIONS

Financial Performance		Three months ended							Six months ended
(in $000's)		June 30, 2023		June 30, 2022		Change			June 30, 2023		June 30, 2022		Change
Revenue	$	12,853	$	16,373	($	3,520)	$	28,771	$	33,652	$	(4,881)
Income (loss) for the period		(2,630)		(3,203)		573			(1,244)		(4,189)		2,945
Operating cash inflows (outflow) before
changes in non-cash working capital		2,261		4,254		(1,993)			8,741		9,548		(807)
Net cash from (used in) operating activities		3,057		5,845		(2,788)		$	4,498	$	12,174	$	(7,676)

Financial Condition (in $000's)

Cash and cash equivalents

Working capital (deficit) (i)

Total assets

Equity

(i) Working capital calculated as current assets less current liabilities.

	As at		As at		Change
	June 30, 2023		December 31, 2022
$	1,739	$	523	$	1,216
	1,130		(3,252)		4,382
	44,571		45,171		(600)
$	12,713	$	13,670	$	(957)

San Albino Property, Nueva Segovia, Nicaragua

The Company holds 100% of four mineral concessions in Nueva Segovia, Nicaragua for a total land package of approximately 18,817 hectares (188 km2). The San Albino gold deposit, located within the San Albino-Murra Property, is the Company's new mine located in Nueva Segovia, Nicaragua. It was a historical small-scale underground gold producer, commencing production in the early 1900's and operating on and off until approximately 1940.

On August 24, 2020, the Nicaraguan Ministry of Environmental and Natural Resources ("MARENA") amended the environmental permit granted to the Company in 2017 (see press release dated September 12, 2017) to allow for the processing of up to 1,000 tonne per day ("tpd") at the San Albino-Murra Property. The amendment is initially effective for a period of five years and can be renewed indefinitely so long as the Company complies with the conditions set forth by MARENA. All other provisions contained in the environmental permit granted in 2017 remain in force and are fully applicable apart from the increased throughput from 500 tpd to 1,000 tpd; total capacity of the two mills on site is 1,000 tpd.

Pre-development work commenced in May 2019 at the San Albino Property, the objective of achieving a thorough understanding of the geology of the area and affirming the continuity and grade of the "in-pit" resources.

On October 19, 2020, the Company reported the results of an updated mineral resource estimate (Technical Report and Estimate of Mineral Resources for The San Albino Project, Nueva Segovia, Nicaragua), which confirmed San Albino's rank among the highest-grade open pit gold projects in the world. In addition, Mine Development Associates, A division of RESPEC ("MDA"), led by Principal Geologist Steve Ristorcelli, has conservatively reflected the selective open pit mining methods presently being utilized at San Albino, such that management has confidence that the fully diluted open pit grade of 9.54g/t gold ("Au") in the Measured and Indicated categories can be met or exceeded when mined.

On July 1, 2021, the Company declared commercial production.

On June 21, 2022, the Company announced that drilling has confirmed gold mineralization over an area of approximately 530 meters ("m") x 470 m (strike x dip) in an area that was initially identified in the 2020 Mineral Resource Estimate as the SW Pit which at the time measured approximately 50 m x 50 m. On October 13, 2022, the Company reported intersects containing 36.65 g/t Au and 29.5 g/t Ag over 3.1 m (Estimated True Width ("ETW")) in the same area, an updated resource comprising the SW pit will be delivered before the end of Q3 2023.

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For the three and six months ended June 30, 2023

On October 13, 2022, the Company announced intersects of 36.65 g/t Au and 29.5 g/t Ag over 3.1 m at the SW Pit area.

On January 5, 2023, the Company announced that it intersected 98.50 g/t Au and 66.3 g/t Ag over 1.9 m ETW 39 m from surface at the San Albino SW Pit.

The table below shows the main variables used by management to measure operating performance of the mine: throughput, grade, recovery metal production and cost.

Operating data	Three months ended				Six months ended
June 30, 2023		June 30, 2022			June 30, 2023		June 30, 2022
Tonnes Mined	1,573,432		1,297,146			3,334,414		2,863,435
Tonnes Milled	54,284		49,332			103,958		96,201
Availability	95%		93%			95%		90%
Avg Tonnes per day	627		586			608		591
Recoverability	72%		75%			76%		80%
Gold sold (ounces)	6,727		9,027			15,448		18,607
Average realized gold price ($/oz sold)	1,911	$	1,814	$	1,862	$	1,809
Cash Cost ($/oz sold)(1)	995	$	860	$	881	$	827
Total Cash Cost ($/oz sold)(1)	1,090	$	903	$	956	$	868
AISC ($/oz sold)(1)	1,322	$	1,121	$	1,372	$	1,098
EBITDA (in $000's)(1)	1,989	$	4,518	$	8,043	$	10,285
Adjusted EBITDA (in $000's)(1)	4,029	$	7,350	$	11,665	$	15,142

1. Refer to Non-IFRS Measures

The increase in the cash costs per gold ounce sold of $135 to $995 is driven by the decrease in ounces of gold sold offset by a decrease in the costs at the mine site for gold ounces produced in Q2 2023. A combination of detailed geological mapping, additional lab testing, and new procedures implemented by the Company have all contributed to improved mining selectivity, which limits the amount of preg-robbing material being fed to the plant. In addition, the plant has worked on improving cyanide detoxification on solutions returning to the mill from the tails area, the reduction in cyanide levels in the return solution will reduce the gold leach in the grinding circuit which will result in reduced loss from preg- robbing carbon. These efforts have allowed the mill to maintain high throughput and improved recoveries.

The increase in the total cash costs per gold ounce sold of $187 to $1,090 is driven by the decrease in the ounces of gold sold in Q2 2023.

The increase in the Company's AISC per gold ounce sold of $201 to $1,322 for Q2 2023 is driven by the decrease in ounces of gold sold offset with reduction of costs in the current quarter.

EXPLORATION UPDATE

On the exploration front, during Q2 2023, there was one operating reverse circulation drill rig at the San Albino-Murra Concession, 2,139 m were drilled in the Las Conchitas North area and 3,671 m were drilled in the Las Conchitas South area as part of the infill drilling program to gain better understanding of Las Conchitas geology.

In the La Segoviana concession 1,155 m were drilled, in the areas of La Reforma, San Luis, Minas America and La Reforma West.

Las Conchitas Area

Las Conchitas is situated between two past-producers, the San Albino Mine and the El Golfo Mine. It lies only 2 km south of the mine site for the San Albino Property.

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For the three and six months ended June 30, 2023

The Las Conchitas area covers approximately 3.75 km2 and is situated immediately to the south of San Albino, where the Company is currently operating a 500 tpd mining and milling operation and immediately to the north of the historical El Golfo Mine located within the Company's El Jicaro Concession.

Las Conchitas contains numerous mineralized structures over a 1,700 m by 800 m area and it has been subdivided into three primary areas: Las Conchitas norte ("LC-North"), Las Conchitas central ("LC-Central") and Las Conchitas sur ("LC- South"). Each of these areas are comprised of multiple subparallel, northeast-southwest striking and gently dipping mineralized veins.

As with the San Albino deposit, the conceptual model for the Las Conchitas mineralization consists of multiple parallel quartz veins that dip gently to the northwest, associated with extensive shear and fault systems which represent possible feeders for mineralized fluids and a favourable environment for precious metal deposition. These characteristics are consistent with the model for orogenic gold-bearing veins, which can extend to depths in excess of a km. Drilling at Las Conchitas has confirmed down-dip continuity of highly mineralized zones identified by trenching; as demonstrated by results of drilling reported on August 18, 2021; gold mineralization is not restricted solely to quartz veins, but also occurs in the host rock (phyllite/schist) containing quartz veinlets.

On July 28, 2022, the Company announced the discovery of "Crucita" which consists of gold bearing structures containing

37.28 g/t of Au and 34.94 g/t of Ag over 2.5 m. Crucita is located approximately 1.44 km south of the San Albino gold mine and is part of LC- Norte.

The Company has released results for LC-Norte,LC-Sur and LC-Central, these results show intercepts with high grade mineralization over minable widths and shallow depths, which may indicate the potential for a significantly larger resource.

On August 18, 2022, the Company announced that it intersected 85.10 g/t Au and 153.0 g/t Ag over 0.8 m (ETW) at Las Conchitas Central connecting Mina Bonanza and Cruz Grande and expanding the known strike length to over 295 m in this zone.

On September 8, 2022, the Company reported that it intersected 15.36 g/t Au and 16.0 g/t Ag over 6.7 m (ETW) at LC- Central with additional intercepts at LC-North and LC-South.

On October 24, 2022, the Company announced that it intersected 42.59 g/t Au over 2.1 m (ETW) at LC-North, 25.07 g/t Au over 2.2 m (ETW) at LC-Central and 65.45 g/t Au over 1.8 m (ETW) at LC-South.

On January 24, 2023, the Company announced results which indicated intercepts of 33.91g/t gold over 1.7 m (ETW) at LC-Central, 12.73 g/t Au over 4.2m (ETW) at LC-South and multiple high grade silver intercepts up to 3,792.0 g/t silver over 1.0 m across Las Conchitas.

On June 19, 2023, the Company announced that it received approval to begin processing material from Las Conchitas, this material will be processed at the Company's San Albino plant.

On July 27, 2023, the Company announced that it had intersected 30.45 g/t Au over 4.5 m. at Las Conchitas, 13m from surface; at the same time the Company announced that materials from Las Conchitas were starting to be processed at the San Albino plant.

On August 2, 2023, the Company announced additional results from the reverse circulation infill drilling at Las Conchita, reporting intersects of 12.09 g/t Au over 11.5 m, 15 m. from surface.

The Company has now developed an internal geological model and is expecting to complete a NI43-101 compliant resource model in the latter half of 2023.

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